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  "documentTitle": "Bristol-Myers Squibb Company (BMY)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2019-03-18 00:00:00",
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  "notes": "This is a classic activist investor 'thesis' slide, focusing on valuation gaps and management incompetence.",
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      "kind": "callout",
      "text": "Shareholders must be absolutely certain before allowing management to bet the Company's future on Celgene",
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      "text": "In order to generate ~$30 billion of value from the pipeline, we must assume that the Celgene pipeline can generate, on average, 10 blockbuster products in 8 years, compared to 3 blockbusters in the past 15 years.",
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      "text": "In order to generate ~$30 billion of value from the pipeline, we must assume that the Celgene pipeline can generate, on average, 10 blockbuster products in 8 years, compared to 3 blockbusters in the past 15 years. This level of success would be unprecedented and is exceedingly difficult to believe, especially since 3 of the pipeline products have already been delayed and 5 are yet to be identified.",
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      "text": "In what we believe are more likely scenarios, even including the Company hitting Wall Street analysts’ revenue estimates for the pipeline, this deal would destroy value.",
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      "text": "Shareholders also need to understand that Bristol-Myers is actually ascribing ~$30 billion of value to the pipeline, not ~$15 billion as is implied by the Company’s presentations.",
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      "text": "Shareholders need to understand that they are investing in a transaction that values Celgene’s marketed products at $55 billion. We believe there is risk to this assumption due to the potential genericization of REVLIMID earlier than Bristol-Myers management expects.",
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      "text": "Additionally, the Celgene acquisition process was rushed – seemingly unnecessarily, given Celgene’s apparent willingness to allow for more time – due to Bristol-Myers management’s fixation with an arbitrary deadline to announce a deal.",
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      "text": "Shareholders must be comfortable and supportive of the true merits of the deal – not simply trust management’s lofty expectations – given the size of the deal and risks it poses.",
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      "text": "Source: Public company filings, Wall Street research, Starboard estimates.",
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      "text": "Management Is Asking Shareholders to Accept Substantial Risk",
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